Cognitronics Reports Fourth Quarter Income Before One-Time Charge
Equal to 28 Cents Vs 12 Cents
DANBURY, Conn., March 10 /PRNewswire/ -- Cognitronics Corporation (Amex: CGN - news) today reported income,
excluding a provision for the settlement of the class-action litigation, for the fourth quarter of 1997 equal to $.28 per diluted
share, up 133% from $.12 per diluted share a year ago.
For the quarter ended December 31, 1997, net income was $563,000, or $.14 per diluted share, versus $433,000 for the
same quarter in 1996. The 1997 quarter includes the previously announced one-time pre-tax charge of $915,000 (net of tax --
$572,000 or $.14 per diluted share) in connection with the settlement of consolidated class-action lawsuits. The settlement is
subject to the execution of a stipulation of settlement and court approval.
Sales for the fourth quarter were $7.1 million in 1997, up 47% from $4.8 million in 1996.
The Company said that the significant increase in fourth quarter 1997 sales over the comparable 1996 period was attributable
to a 68% percent increase in sales by its domestic operations and a 17% increase in sales of distributorship products into the
British telecommunications market.
''The increase in sales of domestic operations is attributable to the continuing success of the McIAS 16xx series products,
particularly the company's flagship McIAS 1623/IP, sold to switch manufacturers, competitive access providers and
competitive local exchange carriers,'' said Brian J. Kelley, president and chief executive officer of Cognitronics.
For the year ended December 31, 1997, the company reported record net income of $3.6 million, or $.93 per diluted share,
compared to $1.1 million, or $.31 per diluted share in 1996. The 1997 year includes pre-tax charges of $956,000 (net of tax
-- $598,000 or $.15 per diluted share) in connection with the settlement of litigation. Sales for the year were a record $29.5
million in l997, up 7O% from $17.3 million in l996.
Statements contained herein which are not historical facts are forward- looking statements. The forward-looking statements in
this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve a number of risks and uncertainties including, but not limited to, variability of sales volume
quarter to quarter, product demand, market acceptance, litigation, risk of dependence on significant customers, third party
suppliers and intellectual property rights, risks in product and technology development and other risk factors detailed in the
company's Securities and Exchange Commission filings.
Cognitronics is a leading manufacturer and supplier of voice processing equipment, including telephone network and call
management products, to telephone operating companies, original equipment manufacturers. |
